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Tropical Storm Threatens Orange Juice Crop

How do you think these companies will fare if this summer is especially stormy?

Tropical storm Beryl brought heavy rains to Florida, drenching groves, and causing a 2.3% jump in orange juice futures. It is unknown if the rain will be beneficial or not to the crops, but the news was enough to send traders into a frenzy to cover their short positions to lock in profits.

The futures gained as much as 7.9% during the day Tuesday, while the front month contract was 3.9% higher at $1.1355 per pound at midday after hitting a two-week high during the day at $1.1735.

The futures have dropped over the past few months from weak demand and low amounts of market-related news. This news is the most relevant that they have seen in months.

Futures traders generally watch hurricanes and tropical storms very closely, and each storm is looked at individually. Tropical storms Beryl and Bud's early arrivals are creating concerns that this year's hurricane season could be bigger, longer, and more intense than other years.

Business section: Investing ideasIf the storms end up hurting the crops, beverage companies will not have as much supply to sell. They all hire firms to hedge the commodity prices with futures, but without the goods to produce their product, the companies might take a hit in revenue.

Below is a list of U.S. headquartered non-alcoholic beverage companies. How do you think these companies will fare if this summer is especially stormy?

4. Dr Pepper Snapple Group(NYSE: DPS): Engages in the manufacture and distribution of non-alcoholic beverages in the United States, Canada, and Mexico. Market cap at $8.7B, most recent closing price at $41.05.